Sales were up from £96m in 2009 for the six months ending June 2010, although profit before tax dropped from £4.5m to £3.1m. O2O cited a drop in customers' "non-core expenditure" for a reduction in its gross margin percentage from 31% to 28.7%.

The company recorded restructuring costs of £2.6m during the period, which in part arose from its acquisition of TPF in February this year.

Commenting on the results, chairman David Callear said the company had grown its private sector customer base, despite difficult trading conditions.

He said: "We are mindful that volume pressures may continue for the rest of the year. However, we are confident that our actions will have a positive long-term effect.

"The market outlook is uncertain but the group is better positioned to deal with this than it has ever been."

Its half-year results come as the company targets "the next big step forward" to grow its market presence after revealing the new Banner Managed Communication (BMC) brand.

BMC, which takes in AccessPlus and TPF Group, is headed up by former TPF group client services director Catherine Burke as managing director.

And having spent 10 months as interim managing director of both companies, Steve McKeever reverts to his role of chief operating officer and has been appointed to the office2office board.

Under the new brand, BMC will focus on four customer propositions of print management, document management, marketing services and direct marketing.

According to Simon Moate, chief executive of O2O, unifying the company's business communications operations under the BMC name will help it become "a major force within this market".

He said: "Our proposition is all about helping customers achieve their goals by improving the quality, efficiency and sustainability of their communications.

"This fits perfectly with the services provided by other parts of O2O group and therefore gives us an excellent opportunity to both broaden, and deepen, our key public and private sector client relationships."